• The Second Facility in the State and Third for the Company Overall, Further Expanding its High-Performance Computing (HPC) Infrastructure
• Executed Additional 70MW Option with Marathon Digital Holdings (Nasdaq: MARA), Bringing Total Contracted Capacity to 276MW

Applied Blockchain, Inc. (Nasdaq: APLD) ("Applied Blockchain" or the "Company") a designer, builder and operator of next-generation datacenters that provide power to blockchain infrastructure and support High-Performance Computing (HPC) applications, today announces the groundbreaking of its 180-megawatt (MW) hosting facility in Ellendale, North Dakota occurred on September 8, 2022. The next-generation datacenter marks the second facility within the state, following the successful 100MW facility in Jamestown, North Dakota that opened earlier this year. The Ellendale facility is expected to begin energizing early in the first half of calendar 2023, leveraging experience the Company gained from the construction and operation of its Jamestown facility.

The Ellendale facility officially marks the third next-generation datacenter for Applied Blockchain, with the construction of its 200MW facility in Garden City, Texas progressing ahead of schedule with several buildings already erected.

Applied Blockchain entered into a five-year Energy Service Agreement (ESA) with a utility partner in Dickey County servicing Ellendale, North Dakota on September 1, 2022. Available transmission capacity and excess wind generation, in addition to strong relationships with North Dakota communities, and contractors to assist with facility construction and operation, were key factors in choosing the location.

“The community of Ellendale and representatives of North Dakota have been amazing to work with as we bring this next facility to life,” said Applied Blockchain Chairman and CEO Wes Cummins. “Having the new 180MW facility located close to significant wind power capacity will allow it to be powered with renewable energy to further propel future high performance computing solutions for global enterprises and applications. The entire capacity of this facility is already under contract, demonstrating the significant demand we continue to have for our hosting services.”

In conjunction with the execution of the ESA and groundbreaking, Applied Blockchain and Marathon Digital Holdings (Nasdaq: MARA) mutually executed the option for an additional 70MW of hosting at the Ellendale location. This brings contracted capacity with Marathon to 276MW and total contracted hosting for the Company to nearly 500MW.

About Applied Blockchain

Applied Blockchain, Inc. (Nasdaq: APLD) designs, develops and operates next-generation datacenters across North America to provide low-cost digital infrastructure solutions to the rapidly growing high performance computing (HPC) industry. The Company has partnered with the most recognized names in the industry to develop, deploy, and scale its business. Find more information at www.appliedblockchaininc.com. Follow us on Twitter at @APLDBlockchain.

Forward-Looking Statements

This release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives. These statements use words, and variations of words, such as "continue," "build," "future," "increase," "drive," "believe," "look," "ahead," "confident," "deliver," "outlook," "expect," and "predict." Other examples of forward-looking statements may include, but are not limited to, (i) that the Ellendale facility is expected to begin energizing early in the first half of calendar 2023, (ii) statements of Company plans and objectives, including our evolving business model, or estimates or predictions of actions by suppliers, (iii) statements of future economic performance, and (iv) statements of assumptions underlying other statements and statements about the Company or its business. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the Company's expectations and projections. These risks, uncertainties, and other factors include: delays in the completion of the Ellendale facility, decline in demand for our products and services; the volatility of the crypto asset industry; the inability to comply with developments and changes in regulation; cash flow and access to capital; and maintenance of third party relationships. Information in this release is as of the dates and time periods indicated herein, and the Company does not undertake to update any of the information contained in these materials, except as required by law.

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